Boeing's Rough Takeoff: 777X Delays and Financial Setbacks

Boeing's 777X jet program is delayed until 2027, leading to a $5 billion charge. This setback allows Airbus to gain ground with its A350 model. Boeing's production delays and financial challenges affect market trust and impact its ability to compete in the surging international travel sector.

Boeing has announced another delay in its 777X jet program, pushing first delivery to 2027. The aerospace giant has taken a significant $5 billion charge due to these setbacks, further complicating its financial situation. The 777X was intended to be central to Boeing's widebody strategy, but repeated delays have hurt its prospects.

CEO Kelly Ortberg disclosed the company still faces substantial flight test certification work despite logging over 4,000 hours of test flights. Boeing's stock took a 2% hit following this announcement, as Wall Street anticipated financial impacts from delayed deliveries.

Rival Airbus is benefiting from Boeing's delays with increased demand for its A350 model. Despite financial hurdles, Boeing's revenue rose 30% this quarter, and the company continues to work on certifying new versions of its 737 MAX jets.

(With inputs from agencies.)